When you think of revenue drivers in your company, you probably don’t consider those one or two beleaguered human resource folks as bringing in the big bucks. Sure, as busy as they are, they make your office run smoothly and can take care of your employees like no other person in your office, but can they demonstrate a return on investment?
Human resource professionals should be a critical component of your company’s growth strategy. Outsourcing some human resource responsibility to an outside vendor such as Abel HR, a Professional Employer Organization (PEO),is one way to help your HR department drive business growth by allowing them to focus on what they do best.
Bringing in the Talent
If you don’t have talented folks filling your office, you aren’t going to be able to carry out your business plan (no matter how airtight it might be). In order to hire the right person for the job, human resources need to not only understand the position that they are hiring for, but also have a firm grasp on the product or service in question, how your company operates in terms of corporate culture and even how anticipated evolution may change their role or duties moving forward. Working with a PEO helps by writing comprehensive job descriptions to attract the best candidates and screens those candidates, saving time.
Another key way talent management drives growth? If you’ve got the best talent at your company, it means that your competitor doesn’t, which puts you at a distinct advantage.
Retaining Star Employees
Sure, getting a good hire in the door is important, but retaining your existing talent is actually MORE crucial to the overall success of your company (particularly in a tightened job market!) Heck, retaining any employee that you have spent the time to train is, in fact, crucial to your bottom line. The cost of replacing an employee in a mid-range position (earning between $30 – $50K) is 20 percent of their annual salary (so $6,000 to $10,000), according to a study by the Center for American Progress. However, if you’re replacing a highly educated company executive, that can cost more than double their annual salary, so an executive making $100,000 will cost you $213,000 to replace.
Unless they are leaving because their position is eliminated, there is also considerable time cost associated with replacing them including hiring, onboarding and reduced productivity that comes with waiting for that new hire to get up to speed.
But an off-site HR pro doesn’t stop there – to keep buns in seats, they also help you to develop a competitive compensation strategy that is appealing to workers and incentivizes them to stay in the job while continuing to perform well.
Finally, Abel HR takes some of the heavy liftings off of HR for you to provide the training you need for your new recruits to get them up to speed as quickly as possible; our training programs are comprehensive and can be tailored to address your company’s unique needs. Further, if we’re the ones providing a portion of the training, it frees up you and your management team to focus on what’s important: making your business the best it can be.
Bring You the Benefits
We often talk about how benefits are crucial to attracting and retaining talent – and as we touched on earlier, this is certainly crucial to your bottom line. However, crafting a compelling benefits package is also crucial to driving engagement. A survey by Deloitte suggests that an engaged employee “consistently turns in superior work, actively contributes to projects or initiatives that lead to the company’s success, and volunteers to participate in efforts that go beyond their job description.” These are definitely characteristics of folks that you want on your team and that will drive your company’s growth. Therefore, your benefits package should strive to keep employees happy and engaged.
Abel HR’s comprehensive benefits portfolio can give employees financial peace of mind. We work diligently every year to negotiate the best benefit offerings at the most competitive price, offering an industry-leading 22 different health insurance plans, five dental plans, and one vision plan through UnitedHealthcare Oxford. In addition, we offer a variety of life insurance options and other perks.
Drive the Train(ing)
Your HR team has hired the right folks, they’ve gotten them to stay on the job, but their work doesn’t stop there! Instead, they have to make sure that these folks know how to best do their job, and that involves providing all kinds of training. Enter upskilling, a term that has been coined to describe improving the skills of workers, usually through training, so that they will be better at their jobs. The idea behind upskilling is that, to a degree, it should be personalized to the employee, or at the very least, their job type.
Abel HR’s folks can provide training on new systems that you implement to make your company more efficient or effective; they not only serve as cheerleaders for the big change (and we all know how change can be received) but also work tirelessly until everyone is up to speed and agrees that this new system is the best. Beyond this, they are also there to tackle the day-to-day HR training, the ones that cover discrimination in the workplace, sexual harassment prevention, and just about everything in between, because a hefty lawsuit would certainly sideline your growth plan!
Keep an Ear to the Ground
Above probably anyone else in the company, your HR folks really know what’s going on in the company. They know who’s topping the performance leader board and who’s struggling, they know who’s happy in their role and who’s looking to jump ship, and they also hear the gossip on how the various departments are functioning together.
When you combine that with the fact that in-house human resource professionals also get to sit in on those executive meetings and thus have a top-level view of what’s going on, you now have an individual who probably knows your company better than you do. With that in mind, a report by The Economist suggested that 70 percent of CEOs want their HR professionals to be key decision makers in their business strategy. With a PEO supporting the in-house HR pro, the in-house pro can focus on making decisions with all of the knowledge at their fingertips – knowing from a boots-on-the-ground perspective where the “holes” are and what areas need the extra attention. They can take the time to learn what might areas of the company or employees need attention before it blows up and head off significant headaches that could stall business growth and development in the long term.
If you don’t have an HR team that can manage all of these various facets, perhaps it’s time to consider partnering with a PEO like Abel. They can help take some of the day-to-day stresses off the table so that your HR rep can become a person that can take a seat at the executive level and become a growth driver in your business.
What’s This Going to Cost Me?
While we’d love to give you a quote right here and now, the customized nature of our business means that there isn’t one single rate for every business. However, the good news is that a call with one of our experts is the first step to assessing your human resource needs so we can develop a customized employee benefits management service solution that allows you to make the best possible return on investment for your business and employees. Email or call us at 800-400-1968.